SPX Daily Chart

Big upside orgy yesterday as evidenced by the long white candlestick. Note bottom on Wednesday identified by the doji candlestick. The move is about 40 handles in 2 days time. Referencing the CPC and CPCE put/call ratio charts from yesterday, a relief rally of from 20 to 50 handles was anticipated and it all basically happened in one day. The 20-day MA at 1692.53 is a critical pivot point today. The sideways range with the 20-day as the resistance ceiling and the 50-day MA at 1678.48 as the support floor is in play. Note how price bounced off the lower red trend line as well as the 100-day MA at 1662.29.

The spike higher was purely news-driven due to the happy talk from Washington, D.C. The RSI was agreeable to some buoyancy but the other indicators were weak and bleak. Stochastics and money flow were oversold which also helped the bounce. The pivot from 1691-1692 is very important at the opening bell today. Futures are flat. If up, price will pause at the 1697-1698 resistance and then decide if it wants to continue to 1706. If 1706 gives way, the SPX is likely on its way to test 1730 again. If price is rejected at 1691-1692 right now, a test of the 50-day will be on tap. Important price S/R is 1706, 1697-1698, 1691-1692, 1685, 1682 and 1669. JPM and WFC bank earnings hit over the next 90 minutes and will dictate market direction, then political clown show will move markets today.

Volume was unimpressive for such a huge upside move, unable to overtake the last two days' volume. The upside orgy was a lot of short-covering. Markets are a crap-shoot with all the uncertainty and the news drives the markets. Projection for now is that the 1691-1692 resistance and/or 1697-1698 resistance should hold, however, the imminent bank earnings can easily blow this projection out of the water. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.